CCIS NEWS Slovenia Business Link Newsletter

September 2019

CCIS NEWS

Opportunities for strengthening the cooperation between Slovenia and Montenegro, especially in the area of energetics and tourism

Over 120 businesspeople attended the Slovenian-Montenegrin business forum on 11 September in order to further strengthen business relations between the two countries. Upon the official visit of Montenegrin Minister of Economy Dragica Sekulić and the business delegation, the event was organised by the Chamber of Commerce and Industry of Slovenia (CCIS) in cooperation with Slovenian Public Agency for Entrepreneurship, Innovation, Development, Investment and Tourism (SPIRIT Slovenia) and Chamber of Economy of Montenegro.

India - an interesting market for Slovenian companies

Over 100 Slovenian and Indian participants attended the business forum on 16 September, organized on the occasion of the visit of the President of India, Ram Nath Kovind, together with a business delegation to Slovenia. The participants were addressed by the presidents of both countries, Borut Pahor and Ram Nath Kovind. A memorandum of cooperation was signed between the Chamber of Commerce and Industry of Slovenia and ASSOCHAM with the aim to strengthen the exchange of business opportunities in Slovenia and India.

Pending the proposal of a guarantee act to build the northern part of the third development axis

Businesses of Koroška and Savinjsko-šaleška region and supporters of the third development axis project expect that the government of Republic of Slovenia will pass the proposal of a guarantee act and submit it for approval to the National Assembly without delay. Thus, it will be possible to implement the project of a modern highway and the area by the northern part of the third development axis will be able to develop faster in the future.

 

UPCOMING EVENTS

19 – 20 September: 9th Public Utility Sector Conference

The main theme of the 9th Public Utility Sector Conference organised by the CCIS - Chamber of Public Utility Sector will be the influence of the public utility service development on modern society. The conference will highlight the public utility service development through time, define the interdependency of the public utility development and the society and pose a question of whether the development prospects of public utilities provide a solution to the issues of modern society.

25 September: Innovation Day

The common thread of this year’s Innovation Day and the CCIS awards for innovations is to contemplate the causes of innovations. Why innovate? Why have particular innovations come about? What is the problem? What is the solution to it? These and other related questions will be answered by this year’s innovators at the Innovation Day, where the Slovenian National Innovation awards will be awarded.

1 – 2 October: Best Practice Day 2019

The conference will face the participants with thoughts on and practical examples of why it is necessary to accelerate a digital transformation in industrial enterprises and how to do it.

4 October: Business forum - Challenges and opportunities of an economic cooperation between Slovenia and Japan

To present development policies of the Slovenian economy in the future and thereto related possibilities of international cooperation with the most cutting-edge Japanese companies, a business event is being organised. The main goal is to present possibilities of expanding the cooperation between Slovenian and Japanese companies. Minister Zdravko Počivalšek, Japanese ambassador Takuro Nozawa and President of the CCIS Boštjan Gorjup will attend the initial part of the forum.

10-11 October: 21st Congress of Accounting Service Providers: The right information at the right time

Accounting clients are becoming more aware and informed and therefore expect a better collaboration experience. They expect accounting service providers to be more involved in their operations for better and more proactive decision making. The congress represents the most important event for accounting service providers in Slovenia. As last year 300 participants are expected to be present.

15 – 17 October: Public invitation for companies: Economic delegation visits Poland: Slovenian-Polish business forum and 9th European Congress of Small and Medium-sized Enterprises

The Ministry of Economic Development and Technology and the Ministry of Foreign Affairs in cooperation with the Chamber of Commerce and Industry of Slovenia, SPIRIT Slovenia and the Embassy of the Republic of Slovenia in Warsaw are inviting all interested Slovenian companies to be part of the business delegation that will be visiting Katowice, Poland between 15 and 17 October 2019. The delegation will be led by Minister Zdravko Počivalšek. The visit of the Slovenian delegation is being organised on the initiative and invitation of the local regional chamber of commerce and industry that is presided by Tomasz Zjawiony, who is a successful entrepreneur and a future honorary consul of our country in Katowice.

24 October: Meetings with Maritime Cluster Northern Germany in Kiel, Germany

MEER KONTAKTE is a networking fair organised by MCN - Maritime Cluster Northern Germany. During the fair, exhibitions, lectures, presentations, visits, and thematic workshops with participants from business, politics, and research will take place. The attendees will have an opportunity to establish new business contacts at the networking that is organised by EEN on 24 October 2019, visit head offices and even the shipyard German Naval Yards Kiel.

DATA SECTION

The economic growth is slowing down in the international context as well as in Slovenia. In the second quarter of 2019, the Slovenian GDP decreased, however, it still remains above the EU average. This deterioration is especially due to the negative contribution of net exports and a lower state expenditure. However, the consumption of households as gross capital formations has increased considerably. Thus, in the second quarter of 2019, the inter-annual growth of the Slovenian GDP was 2.5 % or 2.6 % seasonally adjusted. In the first half-year of 2019, the Slovenian economic growth increased for 2.9 % (1.5 % in the EU 28 and 1.3 % in the euro area). The growth of the private consumption of households intensified in the second quarter of 2019. It increased for 3.4 % while in the first quarter, it increased for 2.3 %. The growth of the consumption of households is increasing together with rising employment rates, higher wages and social transfer growth. In the first half-year of 2019, the average gross wage increased for 4.3 % to 1 728.76 EUR. The number of persons employed is still growing, especially the number of foreigners employed in the industries with labour shortage. In the first half-year of 2019, the number of persons employed increased for 2.9 %. The dynamism is lower than in previous years, which also indicates a lower dynamism of the employment rates due to the gradual slowdown of the Slovenian economy. In one year, the employment rate increased the most in the processing industry (over 6 thousand more people employed), followed by construction (5 900 more people employed), traffic and warehousing. In the second quarter of 2019, the survey unemployment rate was only 4.2 %. At the end of August 2019, 71 544 people were unemployed, which is 5.8 % less than in August 2018 and at the same level as it was before the crisis (January 2009). Gross capital formations increased for 9.2 %, of which fixed capital formations increased for 6.9 %. Among the fixed capital formations, the investments in construction works increased considerably (for 13.4 %). This is connected to the larger amount of public infrastructure works and partially to the commercial construction while the growth of the housing construction is still awaited. Investments in equipment and machinery have decreased considerably as the growth was only 1.3 % (in previous four quarters, the growth was between 6.1 and 11.6 %). This is particularly due to the decrease of investments in the transportation equipment as companies reduced purchases of new vehicles, and due to a lower growth rate for other equipment machinery (for the production industry). The latter can be ascribed to a higher uncertainty in the international context and to the moderate growth of the foreign demand. In foreign exchanges, Slovenia recorded a foreign trade surplus in the second quarter of 2019, which negatively contributed to the GDP growth. Import increased considerably more than export due to a higher domestic consumption and a further growth of investments. In the second quarter of 2019, import increased for 12.3 %, which is its highest increase in the last year and a half. Export increased for 9.4 %, which is its highest increase in the last six quarters.In the first quarter of 2019, macroeconomic indicators for Slovenia showed favourable results despite the visible signs of the slowdown as especially the inner-annual growths were on a lower level.

In the first seven months of 2019, the growth of exported goods increased for 12 % and their import increased for 14.6 %. The growth of import and export in 2019 is additionally promoted by the exchange of products from the category of medical and pharmaceutical products especially via Switzerland due to higher commercial and distributional activities and the calendar effect. The growth of the industrial production has already been affected by lower economic activities of the EU, and it is recording a lower growth than in previous years, especially among the vehicle, metal and leather producers. Thus, in the first seven months of 2019, production increased for 3.9 %. In the processing industry, it increased for 4.1 %. Growth is also recorded in the service industry (6.8 % growth in the first half-year), which also follows the trend of lower growths. In the first seven months of 2019, sales in retail trade (motor vehicles excluded) increased for 4.7 % while it increased for 4.6 % in motor vehicle trade. In the second quarter of 2019, high, yet more moderate growth was recorded in the construction industry. The value of construction works increased for 11.8 % in the first half-year. In the first eight months of 2019, consumer prices increased for 1.7 % on average. Inter-annually, they increased for 2.3 % as they were affected by the higher prices of services in the domestic market (+3.1 %)

Below you will find some statistical data for Slovenia:

Growth rates in % - in comparison to the same period of previous year

Latest data

GDP – real growth

2.5

2.q 2019, S.A.*

GDP – forecast for 2019**

2.9

Apr. 2019

Consumer prices (HICP)

2.3

Aug. 2019

Export of goods

46.3

Jul. 2019

Import of goods

16.4

Jul. 2019

Industrial production (manufacturing)

5.1

Jul. 2019

Retail sales w/o motor fuels (real)

4.6

Jul. 2019

Construction (real)

0.1

Jul. 2019

Exchange rate EURO/USD

1.1126

Aug. 2019

Diesel (EUR/liter), VAT incl.

1.237

Valid from Aug. 13, 2019

*seasonally and calendar adjusted
**Eastern European Consensus

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